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Nordic Technologies AB
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Reference: E-224-E
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Number of pages: 11
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Geographic Setting: Global
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Publication Date: May 11, 2021
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Source: IESE (España)
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Type of Document: Case
Description
The case describes the terms of an offer from a Scandinavian venture capital firm for second-round financing for an early-stage silicon chip technology company in Sweden. This case is an updated version of E-100-E with the same title and from the same author.
Learning Objective
The teaching objective is to gain an understanding of the terms of a financing offer, including valuation and legal issues. The financing term sheet (which is word-for-word the real term sheet) begins with a high valuation but then includes a number of subtle, potentially contentious terms. Class discussion can produce arguments both in favor of and against certain terms. The case also provides insights into financing strategies for start-ups and early-stage technology companies.